Georgia Department of Revenue Prepared September 2018 Local Government Services Division Public Utility and Airline Flight Equipment Valuation for 2018 Public Utility Section Changes From Previous Year Type of Company Electric EMC Flight Gas Gas Pipeline Railroads Telephones Total Equipment Municipal Private PY Number of Companies 7 49 31 23 3 11 28 64 216 CY Number of Companies 7 49 29 23 3 11 28 64 214 PY Unit Value 53,500,000,000 14,491,514,764 80,806,954,500 26,401,758 1,612,300,000 12,222,000,000 33,878,281,260 27,996,001,062 224,533,453,344 CY Unit Value 61,000,000,000 15,059,680,935 89,760,816,800 29,984,139 1,772,300,000 12,770,000,000 34,688,282,738 29,025,785,500 244,106,850,112 % Change 14.02% 3.92% 11.08% 13.57% 9.92% 4.48% 2.39% 3.68% 8.72% PY Georgia FMV Operating 17,461,336,415 11,286,315,946 1,589,509,410 26,264,926 1,600,101,891 2,073,872,205 2,560,938,716 3,455,458,480 40,053,797,989 CY Georgia FMV Operating 18,692,091,994 11,878,546,112 1,768,861,120 29,926,696 1,681,621,147 2,376,847,582 2,639,251,112 3,164,353,303 42,231,499,066 % Change 7.05% 5.25% 11.28% 13.94% 5.09% 14.61% 3.06% -8.42% 5.44% PY Georgia FMV Non-OP 1,423,206,202 27,349,202 0 39,304 1,913,367 7,184,207 44,440,594 3,132,465 1,507,265,341 CY Georgia FMV Non-OP 1,448,267,738 10,433,780 0 39,304 1,886,367 6,596,639 46,065,407 3,308,301 1,516,597,536 % Change 1.76% -61.85% 0.00% 0.00% -1.41% -8.18% 3.66% 5.61% 0.62% PY Georgia FMV Total 18,884,542,617 11,313,665,148 1,589,509,410 26,304,230 1,602,015,258 2,081,056,412 2,605,379,310 3,458,590,945 41,561,063,330 CY Georgia FMV Total 20,140,359,732 11,888,979,892 1,768,861,120 29,966,000 1,683,507,514 2,383,444,221 2,685,316,519 3,167,661,604 43,748,096,602 % Change 6.65% 5.09% 11.28% 13.92% 5.09% 14.53% 3.07% -8.41% 5.26% CY Georgia Return 20,102,127,695 11,845,179,619 1,589,096,201 29,897,437 1,672,484,068 2,381,390,554 2,325,982,129 2,625,618,108 42,571,775,810 CY Georgia FMV Total 20,140,359,732 11,888,979,892 1,768,861,120 29,966,000 1,683,507,514 2,383,444,221 2,685,316,519 3,167,661,604 43,748,096,602 % Difference 0.19% 0.37% 11.31% 0.23% 0.66% 0.09% 15.45% 20.64% 2.76% The values of the operating properties of electric, private gas, pipeline, railroad, and telephone companies are estimated by the unit-rule method if adequate data is obtained. Under the unit-rule method, the value of the operating business is estimated utilizing the income approach and a cost approach to value. In the valuation the income approach is initially given 80% weight and the cost is given 20%. The income approach is a capitalized earnings method in which an estimate of free cash flow for the tax year is divided by an estimated after-tax weighted average cost of capital (“WACC”) minus an estimated future growth rate in free cash flows. Should there be instances where the income approach either cannot be applied or produces unreasonable results, alternate approaches will be used. (For example, a company may not have or might not furnish sufficient historical cost or income data needed to properly apply both the cost and income approaches described herein.) In those circumstances the Department will use the most reliable information reasonably available and its best appraisal judgment in estimating the utility’s unit value, including but not limited to the use of the market multiples or any other accepted valuation method. The values of the operating properties of electric membership corporations and municipally owned gas systems, the flight equipment of airlines, and all non-operating properties are estimated utilizing standard real and personal property appraisal methods. 2018 GEORGIA PUBLIC UTILITY AD VALOREM TAX DIGEST Georgia Department of Revenue Prepared September 2018 Local Government Services Division Public Utility Section Electric Valuations - 2018 Electric Power Companies Co Unit Gross Deductions Net Indicated Deductions Indicated Net DOR Indicated DOR Non-Op Non-Op No. Value Return Return FMV FMV FMV Factor Factor Return FMV Alabama Power 3050 0 148,794 0 148,794 150,000 0 150,000 148,794 1.00810517 1.00000000 0 0 Duke Energy 3100 0 415,222 0 415,222 420,000 0 420,000 415,222 1.01150710 1.00000000 0 0 Electric Power Board of Chattanooga 3200 0 24,276,621 0 24,276,621 25,000,000 0 25,000,000 24,276,621 1.02979735 1.00000000 0 0 Florida Power & Light Co. 3250 35,000,000,000 846,016,956 382,144,855 463,872,101 860,697,494 382,144,855 478,552,639 463,872,101 1.03164781 1.00000000 0 0 Georgia Power 3300 23,500,000,000 22,225,696,798 4,101,909,665 18,123,787,133 22,818,318,394 4,101,909,665 18,716,408,729 18,123,787,133 1.03269855 1.00000000 1,429,115,638 1,448,267,738 Gulf Power 3350 2,500,000,000 193,845,537 143,703,015 50,142,522 169,814,569 100,592,111 69,222,459 69,222,459 1.38051410 1.38051410 0 0 South Carolina Electric & Gas 3500 0 10,372,324 2,660 10,369,664 10,500,000 2,660 10,497,340 10,369,664 1.01231245 1.00000000 0 0 Total 7 61,000,000,000 23,300,772,252 4,627,760,195 18,673,012,057 23,884,900,457 4,584,649,291 19,300,251,167 18,692,091,994 1,429,115,638 1,448,267,738 2018 Public Utility Digest Georgia Department of Revenue Prepared September 2018 Local Government Services Division Public Utility Section EMC Valuations - 2018 Co Net Indicated Non-Op DOR EMC No. Unit Value Gross Return Deductions Net Return Indicated FMV Deductions FMV DOR FMV Indicated Factor DOR Factor Non-Op Return FMV Alabama Electric Coop. 800 1,458,322,548 43,492 0 43,492 43,492 0 43,492 43,492 1.00000000 1.00000000 0 0 Altamaha EMC 802 63,435,887 62,826,138 2,192,964 60,633,174 63,435,887 2,192,964 61,242,000 61,242,000 1.01004114 1.01004114 0 0 Amicalola EMC 804 87,041,861 86,379,349 1,466,710 84,912,639 87,041,861 1,466,710 85,575,000 84,912,639 1.00780050 1.00000000 680,061 680,060 Blue Ridge EMC 806 139,043,410 78,492,397 128,735 78,363,662 60,602,689 128,735 60,473,000 78,363,662 0.77169696 1.00000000 137,519 137,519 Canoochee EMC 808 72,795,212 72,463,187 2,085,880 70,377,308 72,795,212 2,085,880 70,709,000 70,377,308 1.00471305 1.00000000 253,073 253,073 Carroll EMC 810 125,114,865 124,697,953 3,186,331 121,511,622 125,114,865 3,186,331 121,928,000 121,511,622 1.00342665 1.00000000 0 0 Central Georgia EMC 812 120,285,587 124,459,538 2,515,783 122,243,755 120,285,587 1,939,656 118,345,000 122,243,755 0.96810671 1.00000000 1,710 1,710 Coastal EMC 814 60,119,915 59,552,773 952,450 58,600,323 60,119,915 952,450 59,167,000 58,600,323 1.00967020 1.00000000 0 0 Cobb EMC 816 350,408,746 346,220,688 5,994,653 340,226,035 350,408,746 9,034,817 341,373,000 340,226,035 1.00337119 1.00000000 970,765 970,765 Colquitt EMC 818 152,338,028 151,448,712 3,914,933 147,533,779 152,338,028 3,914,933 148,423,000 147,533,779 1.00602724 1.00000000 0 0 Coweta Fayette EMC 820 167,500,195 169,725,244 1,933,403 167,791,841 167,500,195 1,933,403 165,566,000 167,791,841 0.98673451 1.00000000 2,905,673 2,905,673 Dalton Utilities 822 176,835,788 176,835,788 0 176,835,788 176,835,788 0 176,835,788 176,835,788 1.00000000 1.00000000 0 0 Diverse Power Inc 896 130,842,054 124,593,093 3,254,785 121,338,308 58,000,000 3,254,785 54,745,000 121,338,308 0.45117656 1.00000000 559,130 559,130 Excelsior EMC 824 40,686,596 40,374,451 1,257,106 39,117,345 40,686,596 1,257,106 39,429,000 39,117,345 1.00796718 1.00000000 0 0 Flint EMC 826 229,137,786 227,811,038 4,404,851 223,406,187 229,137,786 4,404,851 224,732,000 223,406,187 1.00593454 1.00000000 2,536,692 2,536,692 Georgia Transmission 830 1,877,125,376 1,870,729,496 2,313,197 1,868,416,299 1,870,729,496 2,313,197 1,868,416,299 1,868,416,299 1.00000000 1.00000000 0 0 Grady EMC 832 52,009,793 48,445,124 858,125 47,586,999 52,009,793 858,125 51,151,000 51,151,000 1.07489443 1.07489443 00 Greystone Power Corp.